Karamolegos Bakery: Sales and EBITDA increased in the nine months

The sales of the Karamolegos Artoviomichania group amounted to € 78,481 thousand in the nine months of 2021, compared to € 71,374 thousand in the corresponding period of 2020, ie 9.96% higher, as the listed company announced today.

At the same time, earnings before taxes, financial and investment results and depreciation (EBITDA) increased by 6.15% and amounted to € 10,371 thousand.

In particular, as the company states in a relevant announcement, the company “Artoviomichania Karamolegos SA”, following a letter from the Hellenic Capital Market Commission on 09.11.2021 which was notified to all issuers with securities listed for trading on the regulated market of the Athens Stock Exchange, investing public for the basic financial figures for the third quarter of the fiscal year 2021, the impact of the increase in energy costs as well as the developments in its activity.

The Group and the Company show significant signs of improvement in terms of sales and profitability since the beginning of the year, although the spread of the Covid-19 pandemic continues.

The performance of the Company and the subsidiary in Romania have not been significantly affected by the spread of the coronavirus in terms of sales and operation, while the subsidiary Apollonion SA shows significant signs of recovery both in terms of sales and profitability. The mass vaccination program launched in 2021 as well as the improvement of consumer behavior have contributed positively to the above.

In the ever-changing business landscape, the Company’s Management constantly monitors developments and ensures that measures and policies are deemed necessary and appropriate, in order to ensure the protection of its employees, its smooth operation and the reduction of negative effects of the pandemic to the least extent possible.

Particularly:

• In case of an outbreak, the personnel who were in direct contact with the case are immediately quarantined and PCR tests are performed at the expense of the company.

• Employees in administrative offices, work in compliance with all the rules of hygiene as provided by the health authorities, where required work in shifts while receiving special arrangements for employees belonging to vulnerable groups or for employees who may feel unwell or feel unwell their exposure to the virus, protecting themselves and their social environment.

• Business travel has been limited to the essentials during the pandemic.

• Communication with key partners through electronic media has increased significantly.

The Company’s Management evaluates the potential and real effects of the pandemic on its business activities and the financial performance of the Company and the Group, taking into account a series of estimates and assumptions regarding the increase in prices of raw materials, packaging materials as well as increases in cost of electricity and gas in order to estimate its future cash flows.

Specifically, in terms of gas supply costs, the Company has achieved a stable price for the entire 2021 from the beginning of the year. Respectively, in the supply of electricity, the Company through timely negotiations with suppliers managed to maintain a stable purchase price for the seven months of 2021 while for the months of August and September there was an increase in the purchase price compared to the previous months which exceeded 25%.

From October onwards, the forecasts for the cost of electricity show a rapid increase, with prices exceeding € 200 / MWh while the agreements negotiated by the Company for the new year show significant increases compared to the previous year.

At the same time, there are significant increases in the prices of raw materials (such as flour and oils) and packaging materials, which are further burdened by rising transport costs internationally.

As a result of the above, there is a significant increase in production costs as well as the cost of purchasing goods for the Group companies operating in Greece and Romania. The Management of the Group constantly assesses the situation and the possible effects and takes all the necessary measures to maintain the viability of the Group and the Company and to minimize the impact on their activities in the current business and financial environment. Based on the above, the Company will proceed with the minimum possible price increases of its products, having absorbed a significant part of the increased production costs.

In any case, there is no concern at this stage regarding the continuation of the activities of the Company and the Group.

Within the third quarter of 2021, the new production line was put into operation as well as the new storage and distribution building of the Company in Koropi, Attica, which are expected to increase its production capacity. In September 2021, the Company entered into two long-term bond loans with the National Bank of Greece SA totaling € 20.0m. The first loan of € 14.2m is financed by the Infrastructure Fund, for a period of twelve years with the right to extend for an additional three and a half years and a fixed borrowing rate. The second loan, amounting to € 5.8m, is for a period of twelve years with the right to extend for an additional three and a half years, with a floating interest rate. It is noted that the first repayment installment for both loans is payable in September 2023 while the interest period is six months. Also, in September 2021, the Company entered into an interest rate swap to hedge its interest rate risk.

Nine months:

The basic financial figures and indicators of the Company and the Group for the nine months of 2021 (01.01-30.09.2021) have been formed as follows:

COMPANY:

• The turnover growth rate improved as sales amounted to € 63,334 thousand compared to € 57,657 thousand in the corresponding period of 2020, ie 9.85% higher.

• The growth rate of profits before taxes, financial, investment results (EBIT) improved and in absolute terms amounted to € 4,203 thousand compared to € 3,956 thousand in the corresponding period of 2020.

• Earnings before taxes, financial and investment results and depreciation (EBITDA) increased by 2.27%, ie to € 8,738 thousand compared to € 8,544 thousand in the corresponding period of 2020.

• Earnings before tax (EBT) increased compared to the nine months of 2020, and profits in absolute terms amounted to € 2,716 thousand, compared to profits of € 1,950 thousand in the corresponding period of 2020.

GROUP:

• The turnover growth rate improved as sales amounted to € 78,481 thousand compared to € 71,374 thousand in the corresponding period of 2020, ie 9.96% higher.

• The growth rate of profits before taxes, financial and investment results (EBIT) improved by 46.97%, and in absolute terms amounted to € 4,154 thousand compared to € 2,827 thousand in the corresponding period of 2020.

• Earnings before taxes, financial and investment results and depreciation (EBITDA) increased by 6.15%, ie to € 10,371 thousand compared to € 9,769 thousand in the corresponding period of 2020.

• Earnings before tax (EBT) increased compared to the nine months of 2020, and profits in absolute terms amounted to € 1,872 thousand, compared to profits of € 155 thousand in the corresponding period of 2020.

Regarding the Group’s subsidiaries, “Karamolegos Bakery Romania SA” has not been particularly affected by the effects of the pandemic and continues its upward trend with an increase in turnover by 20.7%.

“Apollonion ABEE”, as we had mentioned in the results of the first half of 2021, is following an upward trend in its turnover compared to the previous year, although it has been greatly affected by the pandemic, with a rate of 10.9% while profits before taxes, financial, investment results and depreciation (EBITDA) increased by 23.2% compared to the same period last year.

The table shows the basic financial figures for the nine months 2021.

The results of the Group and the Company for 2020 should be emphasized that the nine months of 2020 were positively affected by approximately € 1.6m with the extraordinary profits from the VAT refund coming from transactions with the Marinopoulos group, the sale of fixed assets and depreciation grant revenue.

Third quarter:

The basic financial figures and indices of the Company and the Group in the third quarter of 2021 (01.07-30.09.2021) have been formed as follows:

COMPANY:

• Turnover amounted to € 21,354 thousand compared to € 19,003 thousand in the corresponding period of 2020, showing an increase of 12.37%.

• Earnings before taxes, financial and investment results (EBIT) amounted to € 1,279 thousand compared to profits of € 1,595 thousand in the corresponding period of 2020.

• Earnings before taxes, financial, investment results and depreciation (EBITDA) amounted to € 2,832 thousand compared to € 3,258 thousand in the corresponding period of 2020.

• Earnings before taxes (EBT) amounted to € 791 thousand, compared to profits of € 843 thousand in the corresponding period of 2020.

GROUP:

• The consolidated turnover amounted to € 26,056 thousand compared to € 23,454 thousand in the corresponding period of 2020, showing an increase of 11.1%.

• Consolidated earnings before taxes, financial and investment results (EBIT) amounted to € 1,206 thousand at Group level compared to profits of € 1,092 thousand in the corresponding period of 2020.

• Consolidated earnings before taxes, financial, investment results and depreciation (EBITDA) amounted to € 3,174 thousand compared to € 3,597 thousand in the corresponding period of 2020.

• Consolidated earnings before taxes (EBT) amounted to € 498 thousand, compared to profits of € 118 thousand in the corresponding period of 2020.

As mentioned above in the comparison of the results of the nine months, “Karamolegos Bakery Romania SA” continues its upward course in the third quarter of 2021. The restrictions announced by the Romanian government in November 2021 due to the rapid spread of the coronavirus, are expected to have a limited effect on the results of the year.

The table shows the basic financial figures for the third quarter of 2021.

The third quarter of 2020 is affected by approximately € 700 thousand with the extraordinary profits from the VAT refund coming from transactions with the Marinopoulos group.

Loan Liabilities:

The amount of € 17.6m was disbursed within September 2021. while in November the remaining amount of € 2.4m. , from the total funding of € 20.0m mentioned above. Already, on 09/30/2021, a short-term loan of € 5.0m was repaid, while within November, the Company prepaid a long-term bond loan of € 10.0m.